Punishment for evading nationality laws

Section 1 applies where any constitutional or legal provision requires Philippine or United States citizenship as a prerequisite to the exercise or enjoyment of a right, franchise, or privilege.
Section 1 penalizes a Philippine citizen or United States citizen who allows his name or citizenship to be used to evade the citizenship requirement.
Section 1 penalizes an alien or foreigner who profits by the evasion.
Section 2 applies where the law requires that a corporation or association’s capital is owned by citizens of the Philippines or the United States (or both) at a specified minimum percentage.

Section 1 prohibits a Philippine or U.S. citizen from allowing his name or citizenship to be used to evade citizenship-required rights, franchises, or privileges.
Section 1 prohibits an alien or foreigner from profiting from the evasion of citizenship-required rights, franchises, or privileges.
Section 2 prohibits falsely simulating the existence of the required minimum percentage of stock or capital owned by citizens of the Philippines or the United States (or both).
Section 2 targets the simulation made for the purpose of evading the legal citizenship ownership requirement.

For violations under Section 1, the punishment is imprisonment for not less than two nor more than ten years and a fine of not less than PHP 2,000 nor more than PHP 10,000.
Section 2 penalizes the president or managers and the directors or trustees of a corporation or association convicted under Section 2.
For violations under Section 2, the punishment is imprisonment for not less than two nor more than ten years and a fine of not less than PHP 2,000 nor more than PHP 10,000.

Section 1 establishes that the absence of real or personal property, credit, or other assets is admissible as circumstantial evidence.
The admissibility applies when the Philippine or U.S. citizen charged with a violation had no real or personal property, credit or other assets whose value was at least equivalent to the holdings at the time he acquired his holdings in the relevant corporations or associations referenced in Section 2.
The rule operates as a circumstantial evidence basis for proving a violation under Section 1.

Section 3 provides that any corporation or association violating any provision of the Act must be dissolved.
Dissolution under Section 3 requires proper court proceedings.
The dissolution remedy applies to corporate or association violations of any provision of the Act.

Section 4 provides that the Act takes effect upon its approval on October 30, 1936.